NWT Residential Tenancies Act Rent Increase: Section 47 Explained

Every rent increase in the Northwest Territories is governed by a single statute: the Residential Tenancies Act (RTA), R.S.N.W.T. 1988, c. R-5. Section 47 is the section that matters most to landlords raising rent.

What Section 47 Says

Section 47 establishes three core rules:

The 12-month frequency limit. A landlord cannot increase rent for a rental premises until 12 months have expired from the effective date of the most recent increase. If the premises have never been rented, the period starts on the date rent was first charged. A transfer of property ownership does not reset this clock.

The three-month notice requirement. Written notice must be given at least three months before the increase takes effect, and the increase is not effective until three months have expired from the notice date. Service methods include personal service, registered mail, fax if the tenant provides a fax number, and email if the tenant provides an email address for service.

No amount restriction. The section imposes no percentage cap or guideline. The amount is not capped, subject to the tenant's right to terminate (Section 47(4)) and the re-renting rule (Section 47(5)); Section 60(3) separately allows a former tenant to seek reasonable expenses if the Rental Officer finds the landlord did not in good faith intend to increase the rent.

Sections 10 and 12: Limits on Additional Terms

Section 10 makes terms inconsistent with the prescribed tenancy agreement form ineffective, and Section 12 permits additional terms only when they are not inconsistent with the Act or regulations. An escalator clause, an automatic CPI adjustment, or a pre-scheduled stepped increase cannot override Section 47's notice and frequency requirements.

Fixed-Term Leases Under Section 47

When signing a fixed-term tenancy agreement, landlords must choose one of two options prescribed by Section 47:

• Rent will not be increased during the term.
• Rent may be increased during the term, provided 12 months have elapsed since the last increase and proper notice is served.

If the agreement does not explicitly permit increases, the landlord cannot raise rent during the fixed term. Unless the parties sign a new agreement, the expired term automatically renews as a monthly periodic tenancy under Section 49; any rent increase remains subject to Section 47.

Section 47(4): The Tenant's Exit Right

Upon receiving a rent increase notice, the tenant can treat it as a termination notice effective the day before the increase. The tenant must inform the landlord in writing of that intent. Section 47(4) gives this right but does not require the landlord to repeat it in the rent increase notice.

Sections 47(5) and 60(3): Re-Renting and Compensation

If a tenant leaves under Section 47(4), Section 47(5) requires the landlord to give the new tenant a copy of the notice before agreeing to a tenancy and to rent the premises at the amount stated in the notice. Under Section 60(3), a former tenant may seek reasonable moving or other expenses if the Rental Officer finds the landlord did not in good faith intend to increase the rent.

Section 86: Enforcement Power

A Rental Officer's order or decision — once filed with the Clerk of the Supreme Court under Section 86(1) and (2), after the appeal period has expired without an appeal — may be enforced in the same manner as a Supreme Court judgment. A tenant who proves your notice breached Section 47 can apply for an order returning all or part of the increase collected as a result of the breach.

Putting Section 47 Into Practice

The statute tells you what is required. Turning those requirements into a compliant notice with correct dates takes more work than most landlords expect. The Northwest Territories Rent Increase Guide maps each Section 47 requirement to a concrete step — date calculation, notice drafting, service method, and record-keeping — so nothing falls through the gap between the law and your paperwork.

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